The Just Transition Fund (JTF) has a budget of EUR 17.5 billion allocated to the 2021-2027 period. It supports regions encountering socio-economic challenges related to the transition to climate neutrality. The Fund focuses on the regions and sectors most affected by the green transition, due to, for instance, strong dependence on fossil fuels.
The Fund supports investments in pillars such as digital connectivity, clean energy technologies, the reduction of emissions, the regeneration of industrial sites, the reskilling of workers and technical assistance. This wide range of topics means carbon capture and storage (CCS), carbon capture and utilisation (CCU) and carbon dioxide removal (CDR) could be included.
Member states must establish territorial just transition plans to claim support from this fund.
How much is available for carbon removal?
To function, the EU CDR industry will need a large workforce, making it a natural candidate for reskilling programmes across multiple sectors, including academic research, engineering and technical jobs.
Furthermore, investments leading to a reduction in greenhouse gas emissions from industrial activities covered by the EU Emissions Trading System (ETS) can be supported by the fund under certain conditions: they must take place in an approved JTF territory, they must significantly reduce greenhouse gas emissions below the ETS benchmark and they lead to the protection of a significant number of jobs.
CO2 transport and storage projects can also be eligible in some instances. For example, Greenport Scandinavia received EUR 14.6 million from the fund to establish a CO2 collection hub.
On the horizon
By June 2025, the Commission will need to review the implementation of the JTF. The territorial just transition plans developed by member states cover the period up to 2030.
Technology readiness level support
The Fund can support various projects, from creating new companies, supporting RD&I and developing affordable clean energy technologies.
Eligibility
National authorities are responsible for publishing the calls for proposals under the Fund. Therefore, award criteria and requirements vary between countries.
Funding rates
Different funding rates apply to projects selected under the Fund: up to 85% for less developed regions; 70% for transition regions; 50% for more developed regions.